Home / Knowledge / News / Apparel/Garments / Q4FY14 net loss rides higher at fashion retailer Kappahl
Q4FY14 net loss rides higher at fashion retailer Kappahl
Oct '14
Despite posting growth in sales, net financial loss rode higher at Swedish fashion retailer – Kappahl, in the fourth fiscal quarter ending August 31, 2014,.

In the fourth fiscal quarter of 2014, net loss grew further to SEK 10 million from 7 million in the fourth fiscal quarter of 2013.

Kappahl posted a 3.2% hike in revenue in the fourth quarter of 2014 to reach SEK 1,185 million, up from SEK 1,148 million in the prior year quarter.

The gross profit for the quarter under review went up to SEK 703 million from SEK 654 million, corresponding to a gross margin of 59.3%, also up from 57.0% from the same quarter of 2013.

Kappahl said a good balance in inventories combined with a strong range has contributed to the stronger gross margin.

Selling and administrative expenses for the fourth quarter of 2014 amounted to SEK 611 million from SEK 597 million, excluding non-recurring items.

“The non-recurring item of SEK 23 million in fourth quarter of 2014 against SEK 14 million in previous year’s fourth quarter, refers to close-down costs for stores in Finland and Poland,” the retailer explained.

Operating profit during the fourth quarter of 2014 totalled SEK 92 million also up from SEK 57 million in prior year quarter, excluding non-recurring items of SEK 23 million and 14 million, corresponding to both periods, respectively.

Inventories at the end of the quarter under review were SEK 733 million from SEK 772 million. “In total, the size and composition of the inventories is assessed to be satisfactory,” Kappahl said.

Kappahl launched an internal project aimed at improving profitability in unprofitable stores in the previous quarter and has continued during the financial year.

As a result of this, in the fourth quarter, provision was made for a non-recurring item of SEK 23 million for rationalisation of the number of stores in Finland and Poland.

“The work of seeking attractive store locations in existing markets and expanding ecommerce is proceeding according to plan,” the fashion retailer said. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search